We are running Moodle on a WMware GSX virtual server, hosted on a dual Intel Xeon 3.6 Ghz machine, 4 Gb of ram. We are not only running Moodle on this machine, two other applications are running on the same GSX virtual server.
No performance issues so far, with around 80-100 concurrent Moodle sessions.
Hardware and performance
Are You Using Virtual Servers with Moodle?
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